Why your business needs a free zone company bank account
Acquiring your trade license is important for your business. However, opening your free zone company bank account is just as important for your business. Bank account opening will help you handle your company’s finances effectively.
The UAE is world-renowned for having the most attractive tax rates across the globe. It is one of a handful of countries that have zero taxation. This as a result has driven individuals from around the world to open a bank account here.
It is also well known that the majority of foreigners who want to maintain an account in the UAE are from the West. This is because they pay a large sum of taxes such as corporate tax and income tax. However, this isn’t the case in the UAE where you have the ability to completely own whatever you earn. Therefore, regardless of whether they are foreigners or UAE residents, they would save more by having an account here.
Opening a free zone bank account is an integral step for your business and here’s why.
What is a business bank account used for?
The UAE free zone company bank account is created specifically for businesses. The aim is to aid the investor to keep track of their business transactions. It also helps the owner separate business transactions from personal ones.
A free zone bank account would enable the investor to track their company’s expenses, calculate tax liabilities effortlessly, and regulate cash flow more effectively. It is important to find a bank that offers the solutions most suitable for your company. This is so that you would not need any additional assistance and your bank can be a one-stop solution for all your business’ financial needs.
Reasons why your company needs a business bank account.
There are numerous reasons why your company needs a bank account, some of which are as follows:
- Tracking of expenses: Having a separate personal account and company account will help you sort out your personal and professional expenses. Although not advisable, it is possible to use your personal account for your business as well. Albeit, it would make it highly taxing to identify and sort your expenses accordingly.
- Card payments: Credit card and debit card payments are much preferred these days when considering modes of payment. As your business grows, it will be important to ensure your company can accept this mode of payment. Credit card payments by customers are only applicable for business bank accounts and not personal accounts. This is one of the main reasons why opting for a business bank account is ideal for companies.
- Building credibility of the company: Having a free zone bank account would undeniably make you and your company look more professional. If in case a customer wants to use cheques, it would be much more presentable to have a business account than a personal account.
- Protection of identity: Your business would, without a doubt, make a large number of transactions. This increases the chances of having to deal with any fraudulent activities. Having a business bank account would help protect your identity as well as limit your liabilities.
- Partnerships: If you have assigned another individual to take care of your business transactions, it is much more ideal to have a separate bank account for it. This is so that you can protect your privacy and not share details of your personal account. On the other hand, it would also be much more effective to track your business transactions.
The various benefits of having a free zone company bank account
- Full confidentiality of personal information
- Easy and reliable transfer of capital locally and internationally
- Access to international banks and their services
- Availability of almost all types of currency exchange options
- Access to the facility of personal, business and other loans
- Credit card with unrestricted purchase options
- Reasonable interest rates
- Joint account options
- ATM services
- Zero Taxation
What are the requirements to open a free zone bank account?
Free zone company bank account opening requirements are as follows:
- All shareholders must be physically present when submitting the signed documents.
- Foreign entities opening a bank account in Dubai are required to have all the necessary documents certified at the consulate of the emirate where the company had been registered.
- The next step for the foreign entity would be to have all the documents certified by the UAE Ministry of Foreign Affairs.
- A foreign entity can indeed open a bank account in the UAE. However, incorporating in the UAE is often much easier and cost-effective with a local company.
The documents required to open a free zone bank account
The various documents required to open your free zone company bank account are as follows:
- Complete set of company formation documents. Eg: trade license, MoA/local agent agreement/civil partnership agreement, office rent agreement
- Residency visa
- Emirates ID
- Utility bills
- Six months personal bank account statement
You will be required to have your company license signed by the relevant authorities. You will also be required to submit proof of residency in the UAE. All the shareholders must be physically present when submitting the signed documents.
After submission of the signed documents, you will need to wait for compliance approval. With all these documents signed and approved, your free zone bank account will be opened at your preferred bank.
Open your business bank account with Shuraa
If you want to move on to the next step after acquiring your trade license, opening a free zone company bank account is absolutely the right decision. Shuraa will help you get started with the process of opening your free zone bank account with ease.
Shuraa is one of the top business setup companies in the UAE. We have over 20 years of experience helping entrepreneurs form and run their businesses smoothly in the country. In addition, we are also expanding in terms of providing more corporate services to best suit your business needs.
Our corporate advisors will guide you through the entire process of briefing you on how to open a company bank account in Dubai free zone, all the way to gaining approvals. We will guide you through every step of the way.
Contact our expert consultants to learn more about opening a free zone company bank account in the UAE. Call us at +97144081900 or send a WhatsApp message on +971507775554. Additionally, you can also drop in an email at [email protected] and get your queries answered in no time.